The Index of Fear and Greed for Bitcoin shows 22, which stands for “extreme fear,” while the crypto market has returned to the green zone for the time being and the majority of the top 20 cryptocurrencies are demonstrating a modest rise.
According to the web page of the index, this level of “extreme fear” has been holding over the past month, showing a value of 22-23.
This zone of the index is characterized by a great deal of fear as traders and large investors, also known as gain hunters, start buying Bitcoin in large quantities.
As of this writing, Bitcoin is changing hands at $16,453, according to CoinMarketCap.
Bitcoin Fear and Greed Index is 22 — Extreme Fear— Bitcoin Fear and Greed Index (@BitcoinFear) November 23, 2022
Current price: $16,561 pic.twitter.com/f09CpFhSYV
A few days ago, BTC fell below the $15,800 level briefly. The powerful bearish driver that pushed BTC from the $20,000 zone was the recent catastrophe of the FTX exchange that declared itself bankrupt, as well as its affiliate trading firm, Alameda Research, which it was trying to bail out.
The co-founder and CEO of FTX, Sam-Bankman Fried, filed for insolvency and resigned. This scandal provoked a large increase in the lack of trust in crypto exchanges. Users began to massively withdraw their crypto into cold wallets.